By Gordon Deegan
Copyright independent
New consolidated accounts filed by Milltown Inns and subsidiaries for the Old Orchard and the Dropping Well pubs in Dublin and the award-winning Aunty Lena’s bar in Adare, Co Limerick, show it recorded the loss as a result of a non-cash writedown of €6.2m in the value of a freehold investment property.
The group’s operating profits rose by 14pc from €897,192 to €1.02m before the writedown is taken into account.
Revenues dipped marginally from €11.3m to €11.13m in the 12 months to the end of October last.
The directors state that along with operating bars and restaurants, the group also own a number of investment properties. The group also benefited from -“other income” totalling €348,319 which included rental income of €268,319.
The directors said during the financial year, “the group encountered -several challenges that impacted overall profitability”. They state that “while the underlying business operations remained resilient – supported by steady revenue growth across key segments – profitability was significantly affected by increased interest expenses”.
The accounts show interest on loans increased from €750,820 to €767,183.
The interest costs are mainly connected to the Old Orchard purchase – in 2005 Mr Chawke paid out a record €22m for the pub.
The directors said they remain -focused on improving the profitability of the group through a combination of -revenue growth and effective cost management.
The directors said “the group’s -EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) for the year amounted to €1.4m, representing a solid level of earnings relative to turnover, despite a small decrease compared to the prior year”.
The directors further stated that the group successfully refinanced its banking arrangements by entering into a new financing facility in February. They said “this new facility replaces the existing borrowing arrangement and provides extended credit terms”.
The firm recorded a post-tax loss of €6.04m after taking into account a corporation tax charge of €88,410.
The group also recorded an increase of €3.77m in the valuation of tangible assets. The group’s net debt reduced from €14.82m to €14.36m. Numbers employed increased from 169 to 176.
